France Cuts 2026 Growth Forecast
France lowered its 2026 economic growth forecast to 0.4 percent as declining purchasing power weighs on consumer spending and business investment slows. The national statistics office also projected rising unemployment and a difficult path for deficit reduction.
France will record just 0.4% economic growth this year, down from a previous 0.7% forecast, according to national statistics office INSEE on Thursday morning. The downgrade follows a 0.9% expansion last year and falls below the government's current 0.7% target. The weaker trajectory complicates deficit-reduction goals and threatens private sector employment.
